FINANCE

Global Tech Stocks Tumble Amid South Korea AI Rout

Published: Jun. 24, 2026 11:45 a.m. GMT+8

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A plunge in South Korean equities sent shockwaves through global markets Tuesday, sparked by a sharp retreat in artificial intelligence (AI) bets and regulatory warnings over leveraged funds.

The benchmark Kospi index triggered circuit breakers mid-session before closing 10% lower, dragged down by a 12% plunge in heavyweights Samsung Electronics and SK Hynix, which together account for more than 40% of the index.

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South Korea's Kospi plunged 10%, triggering circuit breakers, as Samsung Electronics and SK Hynix fell 12% amid AI retreat and regulatory warnings on leveraged funds.
Panic spread across Asia-Pacific and Wall Street, dragging down chipmakers including Nvidia and Micron Technology.
Analysts warn the crowded AI trade remains vulnerable, with Goldman Sachs flagging credit risks from AI infrastructure capital demands.

AI generated, for reference only

1. A dramatic plunge in South Korean equities sent shockwaves through global markets on Tuesday, triggered by a sharp retreat in artificial intelligence (AI) bets and regulatory warnings over leveraged funds. [para. 1]

2. The benchmark Kospi index triggered circuit breakers mid-session before closing 10% lower, dragged down by a 12% plunge in heavyweights Samsung Electronics and SK Hynix, which together account for more than 40% of the index. [para. 2]

3. The crash was exacerbated by forced deleveraging in single-stock exchange-traded funds tracking the two chipmakers. A day earlier, an official disclosed regulatory coordination to rein in these funds, triggering the rout. [para. 3]

4. Panic rippled across Asia-Pacific, toppling major indexes in Japan and China. [para. 4]

5. Meanwhile, a sell-off on Wall Street Tuesday dragged down major chipmakers, including Nvidia and Micron Technology. [para. 5]

6. The global tech jitters underscore mounting fears that the immense capital required for AI infrastructure is stretching credit limits — a risk recently flagged by Goldman Sachs. [para. 6]

7. With the AI trade increasingly crowded, analysts warn the sector remains highly vulnerable to external shocks. [para. 7]

AI generated, for reference only